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Acquisition of Hotel Properties | 12 Months Ended
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Dec. 31, 2017
Business Combinations [Abstract] |
Acquisition of Hotel Properties | Acquisition of Hotel Properties Hotel Purchase Price Allocation We acquired the Hilton Garden Inn Portsmouth ("Portsmouth") hotel in Portsmouth, NH for $43.4 million on September 20, 2017, the Courtyard Summerville ("Summerville") hotel in Summerville, SC for $20.2 million on November 15, 2017 and the Embassy Suites Springfield Embassy ("Springfield") hotel in Springfield, VA for $68.1 million on December 6, 2017. No acquisitions were completed in 2016. The allocation of the purchase price of each of the hotels acquired by the Company in 2017, based on the fair value on the date of its acquisition, was (in thousands):
| HGI Portsmouth | CY Summerville | ES Springfield | Total
Acquisition date | 9/20/2017 |  | 11/15/2017 |  | 12/6/2017 |  |
Number of rooms (unaudited) | 131 |  | 96 |  | 219 |  | 446 |
Land | $ | 3,600 |  | $ | 2,500 |  | $ | 7,700 |  | $ | 13,800 |
Building and improvements | 37,630 |  | 16,923 |  | 58,807 |  | 113,360 |
Furniture, fixtures and equipment | 2,120 |  | 730 |  | 1,490 |  | 4,340 |
Cash | 8 |  | 1 |  | 3 |  | 12 |
Accounts receivable | 32 |  | 1 |  | — |  | 33 |
Prepaid expenses and other assets | 12 |  | 28 |  | 129 |  | 169 |
Accounts payable and accrued expenses | (27 | ) | (1 | ) | (51 | ) | (79 | )
Net assets acquired, net of cash | $ | 43,367 |  | $ | 20,181 |  | $ | 68,075 |  | $ | 131,623 |
The value of the assets acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach uses inputs of recent land sales in the respective hotel markets. The depreciated replacement cost approach uses inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the respective assets. The Company incurred acquisition costs of $0.5 million and $1.5 million, respectively, during the years ended December 31, 2016 and 2015 which are included in Other charges in the Consolidated Statement of Operations. Property acquisition costs incurred during 2016 related to prior acquisitions for which final amounts were more than previously accrued. Property acquisition costs of $0.7 million were capitalized in 2017. The amount of revenue and operating income from the hotels acquired in 2017 from their respective date of acquisition through December 31, 2017 is as follows (in thousands):
| For the Year Ended December 31, 2017
| Revenue |  | Operating Income
Hilton Garden Inn Portsmouth, NH | $ | 2,453 |  |  | $ | 1,116 |
Courtyard Summerville, SC | $ | 384 |  |  | $ | 152 |
Embassy Suites Springfield, VA | $ | 674 |  |  | $ | 161 |
Total | $ | 3,511 |  |  | $ | 1,429 |
Pro Forma Financial Information (unaudited) The following condensed pro forma financial information presents the unaudited results of operations as if the acquisition of the hotels acquired during the year ended December 31, 2015 had taken place on January 1, 2014. There were no hotels acquired in 2016. Supplemental pro forma earnings were adjusted to exclude $0.7 million of acquisition-related costs incurred in the year ended December 31, 2015. The unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what actual results of operations would have been had the acquisitions taken place on January 1, 2014, nor do they purport to represent the results of operations for future periods (in thousands, except share and per share data).
|  | For the year ended |
|  | December 31, |
|  | 2015 |
Pro forma total revenue |  | $ | 292,908 |  |
Pro forma net income |  | $ | 32,137 |  |
Pro forma income per share: |  |  |
Basic |  | $ | 0.85 |  |
Diluted |  | $ | 0.84 |  |
Weighted average common shares outstanding |  |  |
Basic |  | 37,917,871 |  |
Diluted |  | 38,322,285 |  |
As a result of the properties being treated as acquired as of January 1, 2014, the Company assumed approximately 38,308,937 shares were issued as of January 1, 2014 to fund the acquisition of the properties. Consequently, the weighted average shares outstanding was adjusted to reflect the treatment of these assumed additional shares as issued outstanding as of the beginning of the periods presented. On August 29, 2017, the Company purchased a parcel of land in Los Angeles county for $6.5 million. On October 18, 2017, the Company entered into an agreement to acquire a additional hotel located in Summerville, SC for $20.8 million. This transaction is expected to close in the second quarter of 2018, subject to satisfactory completion of due diligence and customary closing conditions. The Company intends to fund the purchase price with available cash and borrowings under the Company's unsecured revolving credit facility.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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